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ECB bond buying could still end in 2018, policymakers say

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ECB bond buying could still end in 2018, policymakers say

There is still a possibility that the European Central Bank may end its €2.55 trillion bond-purchasing program later in 2018, despite new signs of an economic slowdown, two policymakers said, according to Reuters.

The ECB is set to continue net asset purchases at the monthly pace of €30 billion until at least September. In April, annual inflation in the eurozone fell more than expected, prompting analysts to suggest the ECB might extend quantitative easing beyond September.

ECB executive board member Benoit Coeuré said he maintains his view from the end of 2017 that quantitative easing would not have to be extended. He told German newspaper Die Zeit that economic growth is expected to continue, with inflation likely to rise to the target rate of just below 2%.

Meanwhile, ECB governing council member and Národná banka Slovenska chief Jozef Makuch said the ECB can afford to wind down the asset purchase program, which he said has attained its purpose.

Makuch projected inflation to hit the ECB's target by 2020 to 2021.

"The problem now is not economy, it's politics, global steps, global problems such as steps in the USA, election in Italy and so on," Reuters quoted Makuch as saying.

The ECB is not expected to decide on the future of the stimulus program until its July 26 meeting.